Correspondence with Great Britain : Bank of England Directors, 1920-1928

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Other Directors of the Bank of England in 1920 s given in the September issue of the Bankers Enc clopedia C1921 7C Booth George M r x x x x x x Asbury Col LionelA x x X x x e derson George W x x x x x x Wallace Robert X x X Whigham Walter K z X z z x z z Whitworth Arthur X qmith Renry B Ai Spencer Smith M S Shaw Alexander z 2 4F z z z z X z z z z z tt hee act date of changes is not clear as there Appears to be n lag of a year and a half as A election in the spring of a year is not i Pcorded to the ne t year For ev mple Peacock became a director in the spring of 1921 but the Bankers Enclyclopedia did not give it until Sept 1922 The 1 4 st i44 g ef f rrr et gru Lha t q One of more of directors above mey have been elected as early as 1900 According to Who s Who Booth served as a director t4q IL GO Lo LLdact c ce C 4ti EM t1 1 0 a L 4 4 ic 11 G y b t 1 4 di Z jr e a 4 i d e74 27C 7ez i 1 e I Lf ti Ce to 7 4 i e 1 4 i i i te k Sir E04 c 1 I I g T4 vr ti w fr 1 r o7o Clay p k2 Brien Cokaynt Lord Cullen IClay p 921 3 Edward Grenfell later Lord St Just of nor an Grenfell f lay p Lord Revelstoke Clay p 95 5 Monta7u Norn lan Cecil Lubbock N7 H A Trotter F C Tiarks R I Kindersley Clay p Clay p 107 0 1a cr w Clay p i Clay 149 Clay p Alan Anderson Sir Clay t L0 t1 toe 9 was chosen avernors Glay p v zi 24 7z4 f 11 y c c Directors of the Bank of England elected by 1900 who served during period Sandeman Albert George director Governor GbscheiliCharIes Herman director Aprooks gerbert director e Hambro Everard Alexander Morley Samuel Hope Governor Arbuthnot Charles George p 629 vBonsor Henry Cosmo Campbell William Middleton Governor v Wallace Alexander Falconer Governor Jackson Frederick Huth bJohnston Reginald Eden Governor vCole Alfred Clayton Governor Cunliffe Walter Governor Newman Robert Lydston 1896 19T L 27 Deputy Governor Hcateg William Douro Baring JohnLord Revelstoke p 630 Acres W M The Bank of England from Within Vol TI published in 1931 a Directors of the Bank of England Year elected Name 1914 nschen Charles H x sandemsn Albert G 1866b x Brooks Herbert 1872b x WallacikAlex F 1887b x Campbell Willimn M 1886b x Cunliffe Walter 1895 x Cole Alfred C x Morley samuel H 1882 x x Jackson FrederickH 1892b Johnston ReginaldE 1893 x Hambro Everard A x 1879 Albuthnot CharlesG 1884 x wosre William T 1898 x Bonsor Henry C Develstoke Tord Newman Robert L c x Cokayne Rrien Grenfell Edward Norman Montagu Lubbock Cecil Trotter Venry A Tiarks F C Kindersley R M l902 1905b 1907c 1909c c x x x x x x x Anderson Alan 6 tladis Charles Airedale Lnrd 0 Glsdstone AlbertC peacock Edward Nairtiti J0 18 ordon Harvey lrnest stamp Josiah x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x xx x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x xx x x x x x x x x x x x x x x x x x x x x xx x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 192 8 x x x x x x x x 1922 regischen Yenneth 28 x x x x x x 21 x x x x a The names and dates of office and directorship for f6ose selectsd before 1900 are from W M Acres The Bank of England from Within Vol 11 rm The names of those following 1900 are not complete as there should be 24 directors plus governor and deputy governor The names and dates of all directors thereafter comp from Clay s Lord vormsn with the exception of Lord Airedale and sir Albert 0 Gladstone which come from the Annual Deport of the Bank of England for 1947 And from Who s Who 1951 The term of office starts to April so if all were listed when there were changes there should be more than 26 b Served as governor as well as earlier as deputy governor c served only as deputy governor and Kenneth Voschen whose data come from wuropa Who s Who undated V e4 gut s F 7 2e fit s yi Lord wallenden it t John Baring t Lord Cullen in 0 0 Rqtald Kit son in the 15201s c L Utr i P L Lt J441 C4 1Ati ef 14 cc ci 141 i 1 6 Ate 0 1c el UPS FFICE CORRESPONDENCE DATE TO Mr S V 0 Clarke FRO Evelyn Nay 13 196r SUBJECT Committee of Treasu Qrin Jan 1925 H Knowlton It is difficult to asce tein flion Cloy s Lord Norman who were memberz of the Committee I the Treaeufy who here ar onE the mor lert of Court of the Bank of England In 1918 a cow ittee recorL aemtptIon its accented that they rumter rine at least including the governor deput overro enn fhree who had not seltzd 38 7svernor Mon The probable m4mbei s iu u Norman C4overnox u 192 rtre the wank Vao becane a rierber May p 93 2 Cecil Lubbock Deputy Governor meatfoned as member in 1917 p Brien Cozayne Loru CnILeL for er gown f H A Trotter forme Deputy Goveruor cAl in 1917 paO6 Cornittee 5 Lord Revelstoke montonet as c a r t the A 7 R Y Kindersleyonenionel as rac ber in 1917 p Sir Charles Adas nentioned an absent at Committee of We u y neetini7 in B of E c able to Nor 411 iu F3 52 Jan Si Iztiffic N1 Hambro or Wvard Granfell RS senior directors and vith Revelstoke those whom Nor men 1 ost fellea upon in international banhing p 951 Lei 494 Yrrro b atiprp 9 GRACECHURCH STREET LONDON E C 3 February 26t My dear Mr Strong In the absence of Sir Charles Addis on the Continent and in view of the urgency of the case as you are leaving for the Far East so soon I take the liberty of enclosing a letter of introduction to each of our Maaagers in Yokohama and Shanghai for you to rake use of on your arrival at those ports No doubt Sir Charles Addis on his return to London will write you and give you letters of introduction to Yr Stabb our Chief Manager in Hongkong and to the Managers of other branches with which you would be in touch during your trip via Suez to London Wi hing you a pleasant journey and hoping to have the pleasure of meeting you in London next winter Yours sincerely Benjamin Strong Esq Federal Reserve Bank of New York New York R 9 GRACECHURCH STREET LONDON E C 3 March 18th 1920 R My dear Strong I receiveiyour letter of the 6th Februury this week on my return from Paris I enclose a few letters of introduction which I hope may be of service to you although I think you will find that your reputation has preceded you a Id that you are much better known in the Far East than perhaps in your modesty you are inclined to admit I ar 1 exceedingly glad to hear that you are to have a rest from your strenuous labours and I most heartily wish you a prosperous voyage and an early return with a renewed freight of health and spirits Believe me with kind regards and all good wishes Yours sincerely Mr Benjamin Strong C o American http fraser stlouisfed org Tokio Federal Reserve Bank of St Louis Embassy CKNOWLEDOED VP POS EMPRESS OF BRITAIN ion 4Ny OkAo At KM 0 1 4A k 4L A AA tet vttiLL P 1 CNo ryvv41 Nsethi7rki A Nft jj1 4d Q P4A v LkorM4 k sniNAL Att4 C X4 7 tAk40 t tov Nit tea q tANAI rv 1 vvira t INAUGURAL ADDRESS OF THE PRESIDENT SIR CHARLES ADDIS K C M G Delivered in the Hall of the Goldsmiths Company Foster Lane E C 2 on Tuesday November 8th 1921 at 5 30 p m By the eon rtegy If the Prime Warden and Wardens of the Compiny GENTLEMEN My first and most agreeable duty is to thank you for the honour you have done me in electing me your President I can make no claim to the authority and experience of my imme diate predecessor but I can at least try to emulate his zeal and devotion in your service It shall be my constant endeavour withhi the measure of my capacity to advance the interests of the Institute of Bankers and to uphold the high traditions of a a long line of distinguished Presidents The educational work of the Institute was carried on under difficulties during the war and we are still suffering from its aftermath The technical education of the young banker had hardly begun when he was called to arms Military life is not favourable to the formation of studious habits It is one of the minor harch ships of war that our young men are suddenly called upon resume sustained mental effort after a life which despite its dangeis and hardships may be regarded as upon the whole moieattractive to the spirit of youth So far as numbers are concerned 1 we have more than recovered the ground lost The number of candidates who presented themselves for examination last year is a record one I am sorry to be unable to say as much of Ake quality of the work dove It is disquieting to find that in English composition for example 65 per cent of the candidates failed to obtain 50 marks out of a possible 100 After every allowance is made for the disturbance of war that is not a satisfactory result It is good to master a foreign language it is better to begin by mastering one s own I wish we could get the young banker to realise that the first and essential factor of success in his calling is the ability to think clearly and to express himself accurately in his mother tongue The activities of the Institute are not confined to the sphere of education It was founded to organise the business of banking into a profession to collate and codify a corpus of custom and unwritten law to procure the adoption of common procedure and uniformity of banking practice to conserve the gen interests of its banking members to raise the standard of banking education and to test its efficiency by lectures and qualifying The Inaugural Address of the President examinations In the forty odd years of its existence the Institute of Bankers has acquired a position of influence apd authority together with a corresponding responsibility not only to its men bers now numbering over 12 000 bankers but also to the Government and to the general public who naturally look to it for guidance in all problems of national finance which require technical banking knowledge for their correct interpretation and solution This is especially true of such questions as the control and management of the currency The Cunliffe Currency Committee The Cunliffe Currency Committee for the most part composed of members of the Institute of Bankers in an interim report published in August 1918 recommended the restoration of the effective gold standard which had been practically suspended by the war It is important to discriminate at the outset between a gold standard and the gold standard i e the pre war standard of 123k grains of gold to the pound It must be borne in mind that it was the latter the Committee had in view By an effective gold standard they meant that notes could be freely exchanged for exportable sovereigns The conditions precedent to a return to an effective gold standard were stated to be threefold first cessation of Government borrowing second raising of Bank rate in order to check a drain of gold abroad and the speculative expansion of credit at home and third the limitation by law of fiduciary note issues The Committee after waiting for a year during which time their main contention remained unshaken by any serious criticism issued their final report in December We have reviewed they said the criticisms which have been made upon this part of our report but we see no reason to modify our opinion We have found nothing in the experience of the war to falsify the lessons of previous experience that the adoption of a currency not convertible at will into gold or other exportable coin is likely in practice to lead to over issue and so to destroy the measure of exchangeable value and cause a general rise in all prices and an adverse movement in the foreign exchanges The report in its final form met with general assent and on the 15th December 1919 the Chancellor of the Exchequer announced in the House of Commons the measures recommended by the Cunliffe Committee for the restoration of an effective gold standard which had been formally adopted by H M Government as a part of the national policy of reconstruction after the war The Committee recognised that the process of restoration to economic health must necessarily be slow No support for any scheme of drastic deflation will be found in their report On the contrary http fraser stlouisfed org Inaugural The Federal Reserve Bank of St Louis Address of the President The Inaugural Address of the President trouble I do not despair of seeing a balance on the right side at the end of the year But it is not the internal debt of which I wish to speak n but of the external debt the consideration of which is more strictly germane to the discussion of a return to the gold standard The present position is this Exclusive of one or two negligible amounts all our obligations to other nations except the United States have been discharged I wish we could say the same of the obligations of other nations to ourselves I admit that the United States is a grave exception but surely it is no small achievement an achievement which has aroused the admiring envy of other nations an achievement in which we ourselves are entitled to take a legitimate pride to have succeeded during the last two troubled years in paying off over of our foreign debt Furthermore the Chancellor of the Exchequer announced on the 15th December 1919 that it was the deliberate policy of H M Government to abstain from further borrowing and to that resolution his successor has consistently adhered oversy but of banking e of the past ffectiveness practically ve credit and On the cessation of hostilities in d unchanged ng power of y the device es continued arply accen had carried http fraser stlouisfed org ched Reserve Bank of St Louis Federal The The Inaugural Address of the President 6 The Inaugural Address of the President reduction as opportunity offers by further transfers to the credit of Currency Note Account of notes from the banking reserve of the Bank of England The present position is that the vol of legal tender money Bank of England and Currency Notes circulation is now nearly two and a half times as much as it was before the war Bank deposits in themselves a potential currency are also two and a half times greater than they were in 1914 On the other hand wholesale prices are less than double Retail prices unfortunately have lagged behind The importance of a further and early fall in retail prices to correspond with the fall in wholesale prices can hardly be exaggerated The general conclusion is that if the supply of purchasing power is to be reduced to a due proportion with prices the process of contraction will have to be carried considerably further a a contraction credit or How is this to be accomplished Bybycontraction ofof currency The ca two is still a subject of controversy a variance it is perhaps hazardous for a But in this ccrrpany at any rate I m the personal view that it is largel The expansion of credit and the are so closely inter connected as effect It is possible to hold with the expansion of credit there would of currency and with another that bu rency the expansion of credit would ha which came first opinions will differ the fact that at any rate for the first increase of currency in this country p I must however qualify this stateme being withdrawn from circulation and more correctly be described as one o currency expansion and credit expans between currency expansion and price There is also to be considered the s tween the increase of currency and th It is almost universally t is highest where the expansion of cu The real point in dispute is not wh due to the expansion of credit or to t It is due to both Both were cont The real subject of controversy is borne by each in producing a comm emphasis on the one some on the countries dissent from the general conclusion of in his paper on Inflation read before http fraser stlouisfed org The Inaugural Federal Reserve Bank of St Louis Address of the President The Inaugural Address of the President Stability of Prices High prices or low prices as such are obviously indifferent To use John Stuart Mill s celebrated illustration if all the units of purchaft ing power of the community were by a magician s wand doubled in the course of a night nobody would rise up the next morning one whit better off Prices would have doubled just as the circulation using the word in its widest sense had doubled and that would be all U fluctuations in prices were uniform we might view the result with equanimity Unfortunately for the happiness of mankind fluctuations in priceonever are uniform The index number is only a convenient common measure of the movement of the prices some of which may be rising while others are falling of certain selected commodities which may be taken as representative of the whole It is striking how at every turn of a survey of the actual economic situation we are confronted with the problem of prices It is not too much to say that upon the successful solution of that problem it depends whether this country is to continue to expand its activities or to contract them to the measure of a few expert occupations on which a diminished and probably shrinking popu lation might continue to subsist To produce more goods for home consumption will not save us It is not even enough to produce surplus goods They must be the right kind of goods the kind of goods our customers want offered at the price they are able and willing to pay This does not necessarily imply a return to the pre war price level International trade depends upon comparative cost It is a question of relative prices Goods will only be exported to those countries where there is a reasonable expectation of their exchanging for a greater purchasing power than they command in the country of export When the gold standard is in function if gold is under valued relatively to goods in other words if prices are relatively high it is more profitable to ship goods than gold Conversely when goods are under valued that is when prices are relatively low then it is the gold that is shipped What follows is that the quantitative relation between goods and gold is altered In the one case prices fall in the other they rise until the equilibrium of world prices is restored The great advantage of the gold standard is that the possibility of the export of gold limits the fluctuations of exchange to round about the parity The great disadvantage from the point of view of foreign trade of a paper money regime is that there is no definite limit like the specie point to the fluctuations of exchange But this must not blind us to the fact that the principles which determine the general level of prices under an effective gold standard operate in the same way under a paper money regime with this important difference that the supply of gold is limited by the The Inaugural Address of the President 9 amount of gold dug out of the ground while the supply of paper money is determined by the financial policy of the Government present circumstances a rise in the price level of this country elatively to that of any other country is no longer adjusted by an export of gold it is compensated by a fall in the exchange The old parity of exchange between gold using countries has disappeared for the nonce and its place has been taken by what is known as the purchasing power parity a theory lately associated with the name of Professor Cassel of Stockholm The theory is not indeed new It will be found stated at least by implication in the works of the standard economists An analysis of the general formula was made as far back as 1888 by Professor Shield Nicholson in his Money and Monetary Problems To return to Professor Cassel Our valuation of a foreign money rIn he says depends on the relative purchasing power of the currencies of both countries Hence the following rule When two currencies have been inflated the tew normal rate of exchange will be equal to the old rate multiplied by the quotient between the degrees of inflation of both countries The rate calculated in the way indicated must be regarded as the new parity between the currencies This parity may be called the purchasing power parity as it is determined by the quotient of the purchasing powers of the different currencies It is a neat formula but its practical utility it seems to me greatly impaired by the difficulty of determining what is the relative purchasing power of the two currencies Ordinary index numbers iefer to the prices of things in general and not specifically to the smaller group of things that enter into interis national trade To know that things in general had quadrupled in price in France and doubled in price in America would not therefore enable us to infer that a fifty per cent fall in the dollar valuie of the franc was required to restore equilibrium That inference would only be warranted on the assumption that the prices of things in general as recorad in the index numbers of the two countries had moved exactly parallel with the prices of the goods actually entering into the international trade and that assumption cannot properly be made 1 Devaluation I do not know how far I have bees able to carry you with me but if we accept the finding of the Currency Committee that there Quoted by Dr Chandler in the Commerce Monthly May 1921 National Bank of Commerce in New York t The Political Economy of War p 172 by Professor Pigou MacMillan and Co 10 The Inaugural Address of the President are sound reasons for a return to the pre war parity then I think we must recognise frankly that this cannot be done unless indeed new and unexpected inflation should take place in America with out a considerable amount of farther deflation in this countrAill This once more raises the question How much farther deflation gone far enough Has not A short time ago I asked Far enough for what I now If the question is put to the ask Far enough for whom working man who is out of work to the mineowner who has had to shut down his mine to the manufacturer who has had to close his factory to the farmer who has turned his tillage into pasture because he can no longer raise crops at a profit owing to the decline in prices the answer will be in the affirmative If the same question is addressed to the workman who is fully employed or to the mineowner or the manufacturer who is so advantageously circumstanced that he can still produce at a profit above all if we ask the question of the great mass of the professional classes who depend upon a fixed income the answer will be in the negative It is this clash of different interests within the community which makes it so difficult to determine at what point deflation may be said to have gone far enough One popular argument against further deflation requires notice here It is argued that a return to the old pre war parity would increase the proportion the internal debt bears to the sum of money incomes It is not high prices but rising prices that are the cause of large profits Conversely falling prices are associated with diminished profits Salaries fall in sympathy with the fall in profits Income Tax becomes more burdensome and less productive Taxes on commodities which are fixed in money tend to become unproductive altogether owing to diminished consumption In effect it becomes more difficult to balance the budget All this may be admitted without conceding the paradox that the proper way to balance the budget is by more inflation and not b more reduction of expenditure The general conclusion with regard to further deflation is that the interests of the community as a whole are likely to suffer if the fall in prices is carried to a point which will check the future production of the raw material of industry There would then be the danger of the revival of trade we all expect meeting with such a shortage of raw material as to provoke a violent reaction in prices and thus to prevent or delay the advent of that relative stability upon which successful trade depends The serious decrease this year in the area of cultivation of such staple crops as cotton and jute is significant For a summary of the evils of deflation see Inflation awl High Pzices by Prof Kemmerer Oxford University Press 1920 The Inaugural Address of the President 11 Stability of prices in this country will not of course in itself produce stability of exchange with another country America for There must be stability at both ends We know how the iiexample in the way of correcting the New York exchange last year obstacles were increased by the fact that deflation took place more rapidly in the United States than in this country In fact if Ametica should again inflate exchange will be steadier if we inflate too than if we do not So far therefore as the maintenance of our international trade is concerned it must be admitted that the argument in favour of pushing deflation to the point which would ensure a return to the pre war parity is pro Canto weakened Why then it nny asked should we continue to wrestle with the burthen of deflation with all its attendant ills when a way of escape presents itself not by abandoning the gold standard but by the simple expedient of altering it Is there anything sacrosanct it may be asked in the ratio of 123 grains of gold or 4 86 American dollars to the pound How could we be prejudiced if the pound were reduced to 924 grains gold and the American exchange to a new parity of 3 65 to the pound It is true that gold would then command a premium of 33 per cent that is it would be quoted at 5 3s 8d instead of 3 17s 9d per ounce in paper money while the paper pound would be worth only 15s in gold What would that matter It is worth a good deal less now And as for the American exchange we should go back at a stroke to the much vaunted automatic standard system by which we set such store Prices would be stabilised at the new level by gold flowing out when exchange fell below the new parity of 3 65 and flowing in when it rose above it just as it did when the parity was 4 86 Why not An unlettered man I never listen to the learned Dons I hope I have stated their case fairly who advocate this course and suffer the charm and vivacity of their exposition and realise my incompetence to make an adequate response without feeling constrained to adjure them in the words of Oliver Cromwell to the General Assembly of the Kirk of Scotland I beseech you con cider it possible you may be mistaken Do not let me be misunderstood I intend no sneer I hope I should be the last man to underrate the value of the theoretical economist I am too sensible of my obligations Where long periods have to be considered the theoretical economist is indispensable to business men Indeed if ever I felt tempted to treat his judgment lightly it would be sufficient in order to render me dumb to remind me of the great boom of 1920 and where our hand to mouth business opportunism led us then I know that economists have no other aim than to consider these questions strictly on their merits and with the scientific object of discovering which solution will 12 The Inaugural Address of the President most promote the general good That is the criterion to which we must all bow For my part I am not concerned to deny that in an ideal world devaluation might be the ideal plan But la must be allowed to remark with respect that it is not enough fo a principle to be shown to be logically indefeasible in the seclusion of the economist s study We have to take the world as it is The principle must be brought down into the hurly burly of the market place and proved in operation there through the medium of the heart and mind of ordinary men in conflict with their opposing interests their changing purposes their unruly passions and their defective wills That to my mind is where Professor Cassel s devaluation proposal falls short It may have all the merits claimed for it but if it fails to take sufficient account of human nature or shall r say of human nature as we know it in these islands it is doomed to nullity To suppose that a people so conservative by instinct so tenacious of custom so careful of tradition could be induced to trample on their monetary past and to relinquish the dearly purchased gold standard which rightly or wrongly they believe to be bound up with the prestige of their national credit and their supremacy in international finance is to live in a world of illusion Sentiment Yes certainly we have to take account of sentiment The world is swayed by sentiment It will not do to say that devalu ation is merely the recognition of an accomplished fact since the pound is worth less than fifteen shillings to day Is that a reason for perpetuating a tort Even a fifteen shilling pound we might put up with if it offered any reasonable hope of permanence But does it Suppose the process of deflation were continued in America or that owing to further inflation in this country priceswere forced above prices in America then gold would be exported It is true that on the supposition of a lower parity it would take less gold at 3 65 than at 4 86 to bring about the adjustment of relative prices and restore the new parity of exchange But if the difference in prices were maintained or extended by further inflation the gold would continue to leave us with all the evils of uncertainty of exchange enhanced by the haunting fear that our stock of gold might prove unequal to the strain Oh but then says the theorist you could fix a new parity of exchange but what then becomes of your stability Quite so I do not wish to push take any dialectical advantage or to this argument too far I admit that if trade were more or less in balance there would be no more reason for a breakdown from a new parity than from a restored old one I am only concerned here to make the point that the times are not propitious for the change The fact is that the condition precedent to the success of Professor Cassel s scheme for the stabilisation of exchanges abroad is the stabilisation http fraser stlouisfed org The Inaugural Federal Reserve Bank of St Louis Address of the President The Inaugural Address of the President was surely impending in 1914 There is too much similarity between the crisis of to day and the great crises of and 1866 to let us doubt Jhis paradox All the great historical crises os have been marked by a departure from sound and by sound I mean established currency principles The practical sense of the business men of these days led them to the conclusion that the only cure for these evils was to reverse the process and to return to the old paths They have been justified in their action as we shall be if we share their faith Let us have done with short cuts and by paths and ohne bast ohne rast bend our energies to return to the old standard The road may be long and painful but our fathers have trod it before us and we know the way On this point bankers are bound to speak with no uncertain sound and for my part I take my place by the side of that veteran banker Sir Felix Schuster in his resolute determination to return as soon as possible to the pre war gold standard whether it be this year next year or in five six or ten years That is the policy he believes we in the United Kingdom should have constantly before us That is the policy which I hope the Institute of Bankers will endorse to night One word in conclusion Since its origin is similar the crisis through which we are passing is not likely to follow a materially different course from those we have experienced in the past There has been the same speculative boom We are now passing through the usual sequence of a period of stagnation We shall shortly enter upon a period of trade recovery Already in the Far East where the trouble began are to be discerned the first faint streaks of dawn In India and China trade is reviving A little more patience a little more steadfastness and success is assured A little longer and the old supremacy of this country as the acknowledged leader in the finance of the world will return Is this a time to lose heart or to falter in our task If we make ourselves too little for the sphere of our duty if on the contrary we do not stretch and expand our minds to the compass of the object be well assured that everything about us will dwindle by degrees until at length our concerns are shrunk to the dimensions of our minds It is not a predilection to mean sordid home bred cares that will avert the consequence of a false estimation of our interest or prevent the shameful dilapidation into which a great Empire must fall by mean reparation upon mighty ruins International Chamber of Commerce Conference London 1921 by Sir Felix Schuster Speech J November My dear Sir Charles I note from your letter of November 7 that you have not received the copy of the Agricultural inquiry Report which I sent f0 1 sometime aRo I do hope that it will arrive in tine so that you may read it pt leieura on your voyage to China I in grateful to you for the copy of your Inaugural Address at the Institute of i antcers on Nuvember d which I reaO with much interest and pleasure Pl h kind personal regF rde and eishing yuu a meet deli ihtful voyage to the Far East I am Yours sincerely Sir Charles S Addis 9 Graceohurch London E C S GB MM lAkt 1r gdikowika JAN B S Osovv4k v J ry r t c Am7 A 7LPP E KONG hiv ttikoli p v rt k ks A A ST Gvy L atAkkAK nritA7 a tE kA4 417 O i CW LIJ LAX r v7 74MW e0k kAkw kvv IAA 41 A AIW fiz 41 41C treSviLAnk Kt Ot evt YV 4 er etk t t k m t 9 4tvt Chr LL AP ku LIv Va fa PAA LA r r4 A 7Vvyvt o 1 IWN41 0 4 Vvvi w4 A A ki 14 ht tYyAvvv A 1111V 111 ev Nwelk yy 47 4tANA 4i 111 LA 01 s 014 ht 4 Avt LA 44 Jit citdvalv PH vtrt fv vv4 All k 0 41 4A A fvv 44 i 17 hl AAA Ar tf 77 9 0 ft v 1K hkAovr vv Ar450 ren t rt HKA 611 Arti ke r tk sr fYVNA Afr ftft NANYW4 0A A41 4 t Al Prt 467 A CArril A7tid at v 0C tovw tWX4 77k ire January My dear Addis It tea most kind of you to write me ec fUlly on January 1 after reading the etatenent shiet I mtes heft re the Commission But 1 must say pour letter elver evieence of t degree of natience and fortitude in having read so auot of it teyond what I could ex2eot of the beat of rriande that you eay about iilliams it altogether true and can be said of a number of others 1b have been aseoci ted fith him la thie unfortunate tnd guided atLac on the System Unfortunately also matters have taken a DON turn sore personally disegreetble in Lova mays but on the other hand reflecting no credit T on those responsible for the de7elopment in that attacks are now being made upon the salariee aid to the offizarn the reserve bank our ex2ense acoaantg the oust of our bank buildifws kc The main onestiQn GRRXS to be deposed of for the moment irc In time hoirever it may crop up again all only another evidence cf e desire upon the part of the ignorant to maks money either by printing it or credit easy by manufucturinti it in some fashion or other I cm co pleased with that you say about the restraint which I ha sliovn in avoiding aneodotage There was 4 tremendous temptation to throw in a lot or that sort of thing tc bring ridicule upon some of our critics I think I did let go once or twice but beyond thtt had eense enough not to mar tliaL we tried to develop as a dignified presentation I envy you your trip which covers much of the ground that I took going the other say but look forward with keen pleasure to seeing you here 1 January r C 1924 STREET 9 GRACEinplUIW LONDON Ovw tae ki4 E C PYNANN 1 t NeN NrN4 vv 01 K vv 44 Gec7ik vektr 11 r04 Nkx NYIAtt4 h e NrY OVW a S Nay My dear iddie It was most kiwi of you to remember the interest I took in s aat you said scout hameuy ClopOnsldla book Tt reached Le Barely in Faris and 1 lead it with a greet deal of interest titer little upset in hrie I aanaged t very comfortable return tome end now am about half Jr herneFE but tills year 1 propose to tae rbtLer easy It vas L great pleasure 60 ee you in London T Ash Je could do it oftener lith kindest regards tank you And the othivra in th I um luurs sincerely Sir Onsrisa S Addis 9 Grac mhureh Bt London Encland 9 GRACECHURCH STREET 7 ck Lco z App Au it Afsf vq ke cct pLq k7 okft 4 Atok fr oko r o et 1L Lxktik C rkAtr 06 r v9v Q 14 Nr 4 rYNE AN kkk Mk ovk OWNA Ck NOW LEDOED APR hP 77 ck E 00v AiN r oAL QC Q ZI1N4 1 4sak 40 W4 AP wt r 10ta it 7t N t Nvt 0A st 1 4 t 1 u Av 4 7tk Wsky Ao r ta7t vs t a 40VVvvvvvir fAkktA v A D N1 0 ev 42 AvLwk Nrvn ok cNNeN4km r v vl or ocAk 4 12 Z 0 Ovv kivv4 4i LIN N NNd ckftm akw1 42 GRACECHWOH STREET LONDON E C 3 r r T cLz ah Mme 7t7AN Ar A 1 4 0 ovvv 7t QiNAr Il IteLL 7t LkkA tVst Ltc trv4k e t krs v S 1 4 TELEGRAMS 41kDRAZAL LONDON Old Broad Street TELEPHONE LONDON WALL 7932 E C 2 S c Ka 9th July 1921 B Strong Esq Federal Reserve Bank of New York NEW YORK My dear Strong Many thanks for your letter of the 21st June telling us of Mr Pierre Jay s arrival Unfortunately I have to leave for Paris tomorrow but I hope to be back in a few days when I shall do myself the pleasure of calling at Mr Jay s hotel I have already written him a note to say that if there is anything we can do to help him during his stay he must not hesitate to make use of us No doubt we shall also meet on several occasions at the Bank Conditions here are it anything slightly better since the finish of the Coal Strike but they are still far from satisfactory Our reuail prices are taking in my opinion much too long to adjust themselves to the wholesale prices and this is making the wage situation naturally much more difficult than it need be There is no doubt that our retailers are still exacting a great deal too much from the July ell Ly dear Kindersley Many thanks for your nice note og July 9 Uorman has written me of igy s arrival and pleased mo greatly by commentin upon the fact Which I had anticipated right slow that yen had found him a satisfactory menber of the bank family He is a rare an deliditful person anu you vill enjoy knowing him Many thanks also for what you write of conditions in I trunk you credit ns with mem Una we deserve in the way of progress in the solution of meet of our difficulties Jut we are makin proaress and underlying conditions are improving although superficially the evidence of it is not very convincing as yet SiVCtrely Sir Robert Ll Aindersley 11 Old road iltrest London Ze Knelemi BS ala t RVc BANS THIS ENVELOPE NOT TO BE I M YORK INTER OFFICE CORRESPONDENCE ON ffteletelCkevlee TO N ME DIVISION FROM TIME I THIRTY THREE LIBERTY STREET NEW YORK 45 N Y Cc ik RCCPc 1 C cc In envelope marked private and confidential g i o z I ibt 8 BIS HOPSCATE ION DON E C 2 c 14 C 8 BISHOPSCATE LONDON E C 2 Zo aeer to z t 4 10 d Ic c L rY we 4e4 4 fi N ilb PERSONAL October Dear Mr Peacock I have just returned from leshington after a hurried trip and cant to give you a message which Governor Strong asked me to send you two days ago just before I left town As you may have heard he has been suite sick since his return to this country Three weeks ago he was sent to bed with a bud attack of influenza which be learned later developed into bronchial pneumonia mile at first there were no very alarming symptoms nevertheless aoout a week or ten days ago his condition wts quite serious Fortunately however the pneumonia has now run its course and while he is still very weak and in need of the reateet care he has turned the corner and is progressing as sell as we it hope or expect in the circumstances Until the day before yeaterday he had not been allowed to see any one but when the doctors let him tend for me that day he asked me to erite you to soy that he ass received your personal note to him but that cu account of hie illness it has been impossible for him even to acknowledge it Because of the confidential nature of your letter he says that you will understand my telling you merely that he has received it bnci that he will answer it himself when he ie able to ao so I cannot tell you how upset we have all been about his illness nor indeed hoe much lee miss him at the bank cut we are all so happy that he is October PO know quite out of danger that it is easy for ua to reconcile ourselves to his Alpsence which I am afraid will still be a matter of weeks and perhaps months This letter is not very cheerful but it it least gives me the opportunity again to thank you for your kindness to M3 iideo we croueed together on the Majestic lest yeel I felt so miseraUle moat of the time that I was doubly grctcful to you I oily hope I may have an opportunity to see you again some day ah n I airy not be ouch a load on your handel Alta kind percional regards I o71 F4ithfUlly yours Mr F P Peacock 2 fAlrzon St London England qz1 S BISHOPSCATE LONDON E C 2 A Z e t e c C r C 7 47 A 1 e R fa e r T Gcl AZ e f J lacw e A tc 4 A z Z e 74 g IL r Y C t It 4e t 4 1 7 e c c ZV e t f e 8 BISHOPSCATE LONDON E C Z 0 NOV I kp NatAs VtS 270 gwklte o C ckit S 61 11 8 2b Mr Peacock 2 0the whole subject having caueed him the greatest anxiety until your last letter the receipt of So that you may suite fully unaeretend the apparent neglect in Mr Stroag s not answering your letters before I wish to let you snow at his request just what ha ened about his illness Only two or three days after his return Mr strong was taken ill with influen2 a ehich almoit immediately aevelopec into bronchial pneumonia He was desperately ill for some ways which may not hbve been fully realiwed because of the guarded cables sent both to Mr Norman and Mr Jay in the beginning in fact he had a very narrow escape but about LIFO weCSkb izb60 he turned the cornor and recently he has been improv Now he is being prepared to be taken ing steadily though slowly of course to Colo adu to complete his recuperation It scarcely seems possible that he will be able to go before early December and the length of his stay there But I depenue upou the rapidity with which his streegth returns not be misleading to say that the office For the present it 11 think it will be Spring before he is able to return to therefore meea gue of the later he will are about all that he can attempt although foregoing character endeavor to write you by fiery truly yours Secretary to fir Benj Strong Mr h R Pe tbock 2A Curzon SLreet Loncon 6eland Mr Strong aietatect the whole of this letter save the last paregraph ano Nov 8 1 w26 that he asked me to aad BISHOPSCATE LON DON E C 2 Private 17 Nove nber 1926 Dear Mrs Lundie I all very grateful to you for your letter of November 8th and am so glad to learn that my letters relieved Mr Strong s anxiety I have taken the liberty of showing your letter to Lord Revelstoke and we are both very much pleased to have Strons s comments on the settlement and to find that he 3onsi der s i t sati sfactory We did not realise for some time how very seriously ill dir Strong was or I should probably not have troubled him with a letter at all until later on however my letters have apparently done no harm and i t is lomforting to learn that he is now on the way to recovery and will soon be in Colorado I hope when he gets there he will pick up rapidly Yours si noerely Mrs Gordon Lundie Federal Reserve Bank 33 Liberty Street New York TWENTY SEVEN PINE STREET NEW YORK ie an this matter 0 Yours very truly Governor Benjamin Strong Federal Reserve Bank 35 Liberty Street Nev York City N Y Ootobtr My dear Mr Tiarket Governor Ltrong h e asked we to F aknowledge thank you for your note of Uctoter 15 ebacht arrived on Monday Governor AB Dr Strong thinke beet to defer sn newer until he has had o2 ortunity to lay before rim the arrangements that have They rather completely engage Dr thus f r beea made chchtis time thouih I dm cure that it would pleise him very much to dine with Baron Schroder if the brevity of he stay dOeu not sake it neceecary for Lim to declinc this as he already has bac to decline several other invitations for enterLiament very glad to see that flail worn reachee you ae soon as possible after Dr Schacht s arrival Very truly your Mr Henry Tinrks 27 Pine itreat Hew York Secretary to Mr Ben j Strong